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you friend would be better off buying gold ETF's (Exchange Traded Funds) which offer baskets of precious metal in exchange for cash.

One of the better known is GLD on the NYSE
http://finance.google.com/finance?q=NYSE%3AGLD

ETF's are electronically traded, so can transactions can be carried out online ; Kruger Rand etc, you have to physically hold & transport, I know what I would prefer to have.